Policy Briefs
Price controls and their impact on economy
Tuesday,
14
March,
2023
Tuesday,
14
March,
2023
Over the past few years, food prices have been increasing and Georgia has been facing food price inflation in the double digits. This is primarily due to international market trends that reflect concerns over decreased production, increased crude oil prices, as well as COVID-19 pandemic-related restrictions. Russia’s full-scale invasion of Ukraine increased pressure on international food markets already struggling with soaring prices.
The food prices in Georgia experienced a sharp increase of 22% on a yearly basis in May 2022, but there was some moderation afterward, and the average annual increase during the rest of the year was 16.5%, as shown in Figure 1. Overall, the average price increase in the category of food and non-alcoholic beverages was 17.9% in 2022. In 2023, food prices continued to increase on an annual basis but at a smaller pace of 15% in January. This is particularly concerning as households in Georgia allocate almost half of their total budget towards food expenditures: the share of expenditure on food in total household consumption expenditure increased from 43% in 2019 to 48.7% in 2021 (Geostat, 2023). As a result, the high food prices are putting significant financial strain on the general population, with low-income families being particularly affected.
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Persistent struggle: navigating the high food prices in Georgia
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Increases in food prices and their volatility are global challenges, particularly affecting import-dependent developing countries where spending on food is relatively high. While major concerns regarding price dynamics and volatility are typically driven by the physical availability and financial accessibility of food.
Russian wheat policies and Georgia's strategic responses
23
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International wheat prices have emerged as a significant policy concern in recent years, notably during the Covid-19 pandemic and Russia's war in Ukraine, as Russia has been known for periodically halting its grain exports to impact global prices. Georgia heavily depends on wheat imports from Russia, with over 95% of its wheat historically sourced from there.
Georgia’s biodiversity: urgency of effective policies
14
December
2023
Biodiversity, as defined by the Convention of Biological Diversity (CDB), refers to “the variability among living organisms from all sources including, inter alia, terrestrial, marine, and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species, between species, and of ecosystems” (CDB). Generally, it refers to the diversity of ecosystems and the variety of life on Earth.
Overview of the hazelnut sector in Georgia: past trends and the way forward
20
February
2023
Historically, hazelnuts have been one of Georgia’s main crops in terms of economic value; as the country is located on the Black Sea coastal area, which has suitable soil and climate conditions for growing hazelnuts. Even as early as the fourth century B.C., populations grew wild forms of hazelnut, which later adapted to local conditions and formed regional varieties (GEONUTS, 2023).
